The Umbrella Corporation is considering expanding one of its production facilities to research a new type of zombie, which will hopefully not result in another zombie outbreak. The project would require a $$21,000,000$ capital investment and will be depreciated $($straight$-$line to zero$)$ over its $3$ year life. They know that they will be able to salvage $$8,500,000$ for the equipment at that time.

Incremental sales are expected to be $$15,750,000$ annually for the $3$ year period with costs $($excluding depreciation$)$ of $30\%$ of sales. The company would also have to commit initial working capital to the project of $$2,500,000.$ The company has a $30\%$ tax rate, and requires a $12\mathrm{.}5\%$ rate of return for projects of this risk level.

What is the Projects NPV$?$ Should we take the Project?

Select one:

a$.$ $$5,813,552$; yes

b$.$ $$3,437,500$; yes

c$.-$$$3,800,605$; no

d$.-$$$2,800,412$; no

e$.$ $$6,056,010$; yes